Highly discretionary product could be affected by economic downturns as people focus on savings money or buying cheaper goods or avoid buying discretionary items all together. … "Highly Discretionary Product" has a significant impact, so an analyst should put more weight into it. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs. This statement will lead to a decrease in profits.